Loon, a Canadian stablecoin company, announced that it has raised $3 million CAD in pre-seed financing to develop a regulated Canadian-dollar-backed stablecoin and acquired the CADC stablecoin from Paytrie. The CADC, launched in 2021, has recorded over $200 million in transaction volume, and Loon will now take over as its new issuer.
The round was led by Version One Ventures, with participation from Garage Capital and a syndicate of Canadian angel investors. The financing aims to strengthen Loon’s product development, scale its engineering and compliance teams, and support its ongoing regulatory engagement strategy. The company said the funding round was designed to align Canada’s leading investors and advisors behind its mission of creating a “made-in-Canada” digital dollar.
Loon’s core mission is to establish trusted and transparent Canadian payment infrastructure for the digital economy. The company said Canada’s digital-asset market has relied mainly on U.S.-dollar stablecoins, which has introduced inefficiencies and exported value abroad. By providing a Canadian alternative, Loon hopes to enhance national economic sovereignty and facilitate on-chain settlement in Canadian dollars.
The CADC enables on-chain settlement in Canadian dollars with continuous availability and real-time transactions. This allows use cases such as instant payments between Canadian businesses and freelancers or real-time trade settlements between importers and suppliers. Loon said CADC delivers continuous access, wholesale FX rates, and deep liquidity — aiming to bridge the gap between banking systems and blockchain networks.
Loon has also pre-filed a prospectus with the Alberta Securities Commission as it seeks full regulatory approval. The company said it is collaborating closely with regulators to set new accountability and transparency standards for stablecoin issuers in Canada.
In the coming weeks, Loon will begin onboarding its initial distribution partners, including virtual currency exchanges, fintech platforms, and liquidity providers.
KEY QUOTES:
“Canada is at a crossroads. We can either remain dependent on foreign financial infrastructure or build our own sovereign rails for the digital era. By providing a regulated, trusted digital Canadian dollar, we’re unlocking the next generation of innovation, from payments to capital markets.”
Kevin Zhang, CEO, Loon
“We believe the next generation of financial infrastructure will be built on open, transparent rails. Loon is creating the foundation for a digital Canadian dollar, a critical step toward a more inclusive and sovereign financial system.”
Boris Wertz, Founder & General Partner, Version One Ventures
“Canada needs sovereign digital payment infrastructure and now is the time. We’re excited to back this experienced team with the regulatory commitment and momentum to bring a trusted Canadian stablecoin to market.”
Michael McCauley, General Partner, Garage Capital
